Apollo Pipes Ltd. · NSE:APOLLOPIPE
Apollo Pipes — Q3 FY2024 Earnings Presentation
37 slides from Apollo Pipes's earnings presentation, Jan 30, 2024
Slide 1: Exchange filing cover letter
January 29, 2024 The National Stock Exchange of India Department of Corporate Services/Listing Limited BSE Limited Exchange Plaza”, 5 Floor, th Phiroze Jeejeebhoy Towers, Plot No. C/1, G Block, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East), Mumbai – 400 001 Mumbai – 400 051 SCRIP Code: 531
Slide 2: Q3FY24 Earnings Presentation
APOLLO PIPES LTD. Q3FY24 EARNINGS PRESENTATION Jan’2024 1
Slide 3: Safe harbour
Safe harbour Except for the historical information contained herein, statements in this presentation and the subsequent discussions, which include words or phrases such as "will", "aim", "will likely result", "would", "believe", "may", "expect", "will continue", "anticipate", "estimate", "intend", "
Slide 4: Table of Content
Table of Content 1 Apollo Pipes Overview 2 Growth Levers 3 Macro-Growth Drivers 4 5 6 www.apollopipes.com Future 5 Year Financial Q3FY24 Outlook Highlights Highlights 3
Slide 5: Company Overview
www.apollopipes.com COMPANY OVERVIEW 4
Slide 6: Apollo Pipes at a Glance
Apollo Pipes at a Glance Among the Top 10 5 700+ leading PVC pipe 1,36,000 MTPA Manufacturing Plants Channel Partners manufactures in India Capacity www.apollopipes.com 1600+ 15% 26% 16% 5-year Sales Volume 5-year Revenue 5-year EBITDA SKU’s CAGR CAGR CAGR 5
Slide 7: Q3FY24 at a Glance
Q3FY24 AT A GLANCE Rs. 221.6 Cr 18,868 MT Rs. 20.1 Cr 9.1% Sales Volume EBITDA EBITDA Margin Revenue 5% YoY increase 25% YoY increase 229bps YoY increase 6% YoY decline 5% QoQ decline 17% QoQ decline 59bps QoQ decline 11% QoQ decline Rs. 9.1 Cr Rs.16.6Cr 14.1% 9.4% PAT Cash Profit *ROCE *ROE 87% YoY
Slide 8: 9MFY24 at a Glance
9MFY24 AT A GLANCE Rs. 731.4 Cr 59,890 MT Rs. 70.4 Cr 9.6% Sales Volume EBITDA EBITDA Margin Revenue 25% YoY increase 82% YoY increase 380bps YoY increase 10% YoY increase Rs. 35.9 Cr Rs.57.3Cr 14.1% 9.4% PAT Cash Profit *ROCE *ROE ~4xYoY increase 93% YoY increase 5.5% was in FY23 9.5% was in FY23 w
Slide 9: Apollo Pipes at a Glance: Key Focus Areas
Apollo Pipes at a Glance Agriculture Segment Water Management Construction Oil & Gas Segment Telecom Ducting Segment Segment •Casing pipes •Hot & cold potable water •Sanitation & Sewage pipes •Conveying edible oils and •Drip irrigation & distribution & transportation •Plumbing Pipes chemicals & corr
Slide 10: Product Portfolio: Diversified Basket of 1,600+ Products
Product Portfolio Diversified Basket of 1,600+ Products PPR-C PLUMBING CPVC PIPING uPVC Piping System SYSTEM SYSTEM uPVC Pipes & Fittings | uPVC Column Pipes | S W R Drainage Pipes | uPVC Pressure Pipes PPR -C Pipes & Fittings CPV C Pipes & Fittings Well Casing Pipes | Underground Drainage Pipes HDPE
Slide 11: Product Portfolio
Product Portfolio Commercial PVC pipe • Started manufacturing UPVC • Largest plastic piping Concluded promoter Commissioned the Raipur manufacturing operations Plumbing Pipes fittings with solution company infusion of Rs. 142 crore plant to tap Central and Established 3600 MTPA in 180 MTPA capacity
Slide 12: Brand Ambassador and TV Commercial
Announced Mr. Amitabh Bachchan as 1 Brand Ambassador of APL Apollo New Tv Commercial Launched on 2 19th December 2023 3 6.3 Million Views 4 2.1 Million Views www.apollopipes.com 11
Slide 13: Brand Ambassador and Social Media Campaign
1 Raveena Tandon Appointed as Brand Ambassador 2 Social Media campaign launched in Q3FY22 continue to garner good response 8.5 Million Followers Bath Fitting 3 (On Raveena’s Platform) 6.8 Million Followers www.apollopipes.com Digital Campaign, Packaging 4 promotions etc 12
Slide 14: Environment, Social, Governance and Safety Policy
Our Environment, Social, Governance and Safety Policy Cost Savings and Energy conservation are one of the key focus areas for Apollo Pipes • Installed rooftop solar plant at Dadri for optimum utilsation of energy • Evaluating opportunities to install rooftop solar plants at Ahmedabad and Bengaluru i
Slide 15: Growth Levers
www.apollopipes.com GROWTH LEVERS 14
Slide 16: Key Business Strength
Key Business Strength Catering to multiple sectors – Expanding footprint in India Agriculture, Water Management, Infrastructure Proven expertise in Strong and highly experienced complex projects Management Team Advanced equipment & technology Multiple and efficient product www.apollopipes.com – cost e
Slide 17: Strengthening distribution network across India
Strengthening distribution network across India to Augment presence and improve market penetration Enjoys a Dadri& Sikandrabad dominant and (Manufacturing Unit) leading presence in North India Extensive distribution network significantly reduces delivery time to 4 8 hours Tapping newer (from 10-12 d
Slide 18: Diversified Product Portfolio, Aiming for 2,500+ Products
Diversified Product Portfolio with total offerings at 1,600+, Aiming to achieve 2,500+ products to the basket • Range of products manufactured at the technologically-advanced manufacturing facility at Dadri & Sikandrabad at U.P., Ahmedabad at Gujarat, Tumkur (Banglore) at Karnataka and Raipur at Chat
Slide 19: Capacity Expansion to aid long-term growth plan
Capacity Expansion to aid long-term growth plan Available Capacity 1,36,000 MTPA Ahmedabad, Bengaluru and Raipur www.apollopipes.com line for the value added products at new locations 18
Slide 20: Macro Growth Drivers
MACRO GROWTH DRIVERS www.apollopipes.com 19
Slide 21: PVC Pipe Industry
PVC Pipe Industry The Indian PVC pipes and fittings market expected to register 15% CAGR during FY 22 - FY26 • The domestic plastic pipes industry size at ~ ₹ 350Bn • Organized players account for ~70% market share • Key features of plastic pipes against other pipes - Lightweight - Ease of transporta
Slide 22: At the Forefront of multiple sector trends
At the Forefront of multiple sector trends Urban Infrastructure & Construction Water Management Agriculture Focus • Infrastructure push - plumbing and • Rehabilitation of aging pipelines and • Improving irrigation schemes for distribution requirements installation of new pipes in transportation farm
Slide 23: Future Outlook
www.apollopipes.com FUTURE OUTLOOK 22
Slide 24: Capacity expansion plan
Capacity expansion plan ONGOING EXPANSION CAPEX Dadri-2 Dadri-1 & Tumkur (Greenfield) (Brownfield) Rs 100 cr. 25,000 Ton Current capacity: Total capacity: 286,000 ton 136,000 ton FUTURE EXPANSION in 3-4 years 125,000 Ton Rs 400 crores West South East Capex to be funded from equity infusion of Rs 260
Slide 25: Focus Areas for FY24
Focus Areas for FY24 Strengthen Undertake a Register solid Penetrate and Improve Undertake foothold in Pan phase-wise growth in sales – establish utilization at the various brand India capacity expansion targeting revenue footprint into existing building at the existing growth of around neighboring
Slide 26: Operational & Financial Highlights
OPERATIONAL & FINANCIAL HIGHLIGHTS www.apollopipes.com 25
Slide 27: Quarterly Performance
Quarterly Performance Q3FY24 Revenue (Rs. Cr) Sales Volume (Tons) 251.9 260.3 249.5 21,219 236.7 19,803 18,868 221.6 18,011 18,685 207.0 15,465 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 EBITDA (Rs. Cr) PAT (Rs. Cr) 29.4 15.0 13.9 26.2 12.9 24.1 2
Slide 28: Financial Trend
Financial Trend 9MFY24 5 Yr. CAGR 26% 5 Yr. CAGR 15% Volume (Tons) Revenue (Rs. Cr) 915 66,567 59,890 784 731 53,849 44,692 47,333 39,823 518 408 362 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24 5 Yr. CAGR 16% 5 Yr. CAGR 2% EBITDA (Rs. Cr) EBITDA Margin (%) 100 93 25% PAT (Rs.Cr)
Slide 29: Financial Trend
Financial Trend 9MFY24 Net Working Capital (Days) Op. Cashflow (Rs. Cr) 74 74 68 77 68 59 56 46 47 40 24 22 FY19 FY20 FY21 FY22 FY23 9MFY24 FY19 FY20 FY21 FY22 FY23 9MFY24 ROE (%) ROCE** (%) 23.9 Net Debt/Net Cash* (Rs. Cr) 21.1 18.6 19.0 9 13.9 13.5 13.2 14.1 10.6 www.apollopipes.com 9.5 9.4 FY19 F
Slide 30: Profit & Loss Statement
Profit & Loss Statement Particulars (Rs Cr) Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Sales Volume 18,011 18,685 21,219 19,803 18,868 Total Income From Operations (Net) 237 252 260 249 222 Total Expenditure 221 223 234 225 201 Raw Material expenses 179 181 190 178 157 Employee expense 14 12 15 16 15 Other
Slide 31: Balance Sheet and Cash flow Statement
Balance Sheet and Cash flow Statement Balance Sheet - Assets (Rs Cr) H1FY24 FY23 Cashflow Statement (Rs Cr) H1FY24 FY23 Cash & Bank Balance 57 35 EBITDA 50 68 Receivables 72 66 Change in receivables -7 5 Inventories 184 171 Change in Inventory -14 -39 Other current assets* 35 59 Change in other WC -
Slide 32: Conclusion
CONCLUSION 31 www.apollopipes.com
Slide 33: Key Takeaways
Key Takeaways Increased market presence and Target to achieve improving 25%+ revenue distributor network growth CAGR over to address demand next three years across Leveraging ‘APL Value-added pan-India Apollo’ brand Available Capacity product categories reach and recall of 136,000MTPA to provide imp
Slide 34: About Us
About Us Ap ollo Pipes (BSE: 531761; NSE: APOLLOPIPE) , is among the top 10 leading piping solution providing Company in India. Headquartered in Delhi, the Company enjoys strong brand equity in the domestic markets. With more than 3 deca des of experience in the Indian P ip e Market, Ap ollo Pipes h
Slide 35: Thank You
ssuseih Group THANK YOU Eixau0 PIPING SYSTEMS Made tor lite
Slide 36: Apollo Pipes Limited press release
Apollo Pipes Limited A- 140, Sector 136. Noida, Uttar Pradesh- 201301 9MFY24 Sales volume higher by 25% Y-o-Y to 59,890 Ton Revenue increased by 10% Y-o-Y to Rs 7.3Bn EBITDA increased by 82% Y-o-Y to Rs 0.7Bn Noida, Jan 29, 2024: Apollo Pipes Limited, among the top 10 leading piping solution providi
Slide 37: About the Company
About the Company Apollo Pipes (BSE: 531761; NSE: APOLLOPIPE), is among the top 10 leading piping solution providing Company in India. Headquartered in Delhi, the Company enjoys strong brand equity in the domestic markets. With more than 3 decades of experience in the Indian Pipe Market, Apollo Pipe